Rickmers, Apollo jointly invest in containerships

Rickmers Group and funds affiliated with Apollo Global Management have created a joint venture to invest in containerships.
The joint venture will initially focus on used vessels and has the capacity to invest up to $500 million, and
investments are expected to be made over a period of several years.
The firms said the joint venture may also be expanded over time to include new ships and other ship-related investments if the parties identify attractive projects in those areas and mutually agree to pursue them. Rickmers will provide services for the jointly acquired fleet, including technical and commercial ship management.
"This joint venture is a further milestone along the path we have embarked on to develop a number of new options for investing in and growing our businesses. Rickmers is excited about the prospects that this collaboration with a firm with the resources and capabilities that Apollo brings to this venture," said Ronald D Widdows, chief executive officer of Rickmers Group, in a statement.
Ignace Van Meenen, chief financial officer of Rickmers, said successful issue of a bond by Rickmers in June made the deal possible.
"Part of the proceeds from this issue were envisaged to finance growth opportunities just such as this new venture with Apollo," he said.
For more details about Rickmers' plans to invest in the container shipping sector, see the story "Quest for Capital" in the August issue of American Shipper.